Posted on 11/09/2012 11:21:04 AM PST by grundle
Nearly two-thirds of employers expect to see a cost hike in their health plans when the Affordable Care Act goes into effect in 2014, according to new data from the consulting firm Mercer.
Employers in the restaurant and retail industries -- those with a large number of hourly wage workers who traditionally had minimal or no health insurance -- are more likely than other companies to drop their health plans or cut worker's hours in order to maintain their already slim profit margins.
According to a Mercer survey of 1,203 employers, nearly half of retail and hospitality employers expect the health care overhaul to push up cost by at least 3 percent in 2014, with another third don't yet know what the impact will be.
Papa John's CEO John Schnatter told shareholders during a conference call last week that the health care reform will cost the company an additional 11 cents to 14 cents per pizza, which equates to 15 cents to 20 cents per order.
McDonald's Corporation (NYSE: MCD) voiced similar concerns. The world's largest restaurant chain's CFO Peter Bensen said during a conference call in late July that complying with the health care law will cost as much as $420 million annually. McDonald's will likely raise its menu prices when the law goes fully into effect in 2014 to cover the health costs, according to CFO Journal .
"With health benefit cost already rising at twice the rate of general inflation, an additional increase of 3 percent or more will be very tough for employers to absorb," Sharon Cunninghis, leader of Mercer's U.S. Employee Health & Benefits business, said in a statement.
The major provisions of the so-called Obamacare scheduled to take effect in 2014 affect employers with large numbers of part-time and low-paid workforces. For example, beginning in 2014 employers with 50 or more full-time workers -- defined as those working at least 30 hours a week -- will be required to extend coverage to all full-time employees or face possible penalties of $2,000 per employee.
Many retail and restaurant employers hover around the 50-worker threshold and feel that it would make economic sense to stay small -- cut hours or eliminate worker -- to avoid triggering the requirements of the law.
Mercer found that about 46 percent of restaurant and retail companies said they would have to change in some way once the law comes into effect, compared with 16 percent of financial-services companies.
"Extending coverage to more employees will be a significant new expense for these employers," said Tracy Watts, Mercer U.S. health care reform leader in Washington.
One of the “sad and bitter fruits” of the mess of Tuesday’s Election Day.
And full time jobs are evaporating as more employers switch to part time to avoid Obamacare costs.
These are the folks who voted for the Obamunist. I say screw ‘em. They got what they wanted.
Whatever draconian rules against capitalism are implemented outside of outright domination aided by terror and murder, capitalism will always find a way to beat it.
That’s because we are just plain smarter than they are. As long as they still follow some sort of rules, we will perservere - count on it. If they move to terror and murder, well, they’ve stepped in some real shit.
Allow the differences between the parties to be visible. Do not muddy the waters by trying to "own" half of what Obama puts in place. Compromise and particiaptation in the march off the cliff do not help the country, and do not help the party.
You're spot on. The voters said, "let's have socialism." So... let 'em have it. Republicans in the House should step aside and abstain on every tax hike vote, but very emphatically remind everyone... YOU WANTED THIS!!!!"
![simpsons_nelson_haha2[1]](http://farm8.staticflickr.com/7260/8170153514_a4324d0a1e.jpg)
I agree we should let them have it. We know the outcome.
But, also, we need to study other times and places in history where the inevitable results have come to pass and prepare accordingly,
mostly so that just those who believe it will lead to utopia end up being the ones suffering, not us.
Doesn’t matter. Bush will be blamed, and the population that voted for Obama will believe it.
I better not hear any blacks or Latinos complain about how hard it is to get a job over the next four years. This is what you guys came out in record droves to vote for. Enjoy!
Don’t worry. Won’t be long before Obama and Co with the blessings of Bonehead fix that loop hole.
It will be changed to “if your employed. You must be covered”
They wanted this, they want more dependednt unemployed leeches and they got them, give them more.....
Atlas Shouldn’t Shrug, Atlas should get even!
If an army of dumbed down leeches takes 50 years to take down a system and collapse it...
Imagine what a group of producers who are pissed off and know hard work and are extremely motivated can do in 4 short years!
They want Communism, Maybe we should give them so much damned communism they choke on the damn stuff by collapsing the socialist systems they have “frog boiled” us into taking.
F*** ‘em. They’re the bastards that elected Obama. Let them reap the whirlwind.
Bush can’t be blamed for Obama’s second term. Obama will have to blame his immediate predecessor, himself.
The, “it’s the House Republicans fault” drumbeat has already started.
Oh you have no idea how wrong you are.
Logic would dictate that you are correct, but we all know that logic and progressivism go together like liberal and work ethic.
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